With countries worldwide beginning to ease back on COVID lockdown restrictions, Ade Repcenko, Spinola Gaming CEO, has given his thoughts on the ‘new normal’ which awaits the lottery sector in a post-COVID world and the lesson learned throughout the health crisis.
Repcenko discussed how prior to the COVID lockdown the lottery sector was traditionally operated through retail means, but has been migrating slowly towards a digital revolution.
The CEO commented on how certain lotto organisations were looking to focus extensively on the digital medium in order to reach new global audiences and give players the opportunity to purchase tickets on demand. That said, the digital transformation for the lottery sector was not accepted as quickly as it had been seen throughout other aspects of the gaming industry.
He said: “Covid-19 removed all player access to lottery’s established retail networks and forced companies to find digital solutions fast in order to find new ways of reaching their players, or risk not reaching them at all. Many were those who managed to make the switch, with others being forced to temporarily close and cease operations until restrictions were lifted.
“Lotteries which had digital sales available saw sustained revenue to see them through the pandemic, and also noted a marked increase in online sales during this period. American state lotteries whose offering included online lotteries saw online sales surge more than 10 percent. In New Hampshire, the state lottery saw a 38 percent surge in first-time digital lottery players in February and March.
“This trend was also seen in Europe. In a very interesting online webinar titled “Lotteries in COVID-19 Lockdown”, the European Lotteries (EL) Secretary General Arjan van‘t Veer reported that online lottery games were performing better than initially expected. Robert Chvatal, CEO of the Sazka Group also revealed that “many lotteries have seen a significant increase in online sales share” due to the fact that retail options were no longer viable.”
In reference to the ‘new normal’ that is expected in the post-COVID industry, the CEO highlighted how social distancing measures continue to resonate with people and as a result the way in which individuals interact has changed.
He also discussed how despite establishments slowly re-opening, patrons are choosing to visit physical retail less, especially considering that in some cases the re-opening of establishments has resulted in a resurgence of cases.
He concluded: “People got accustomed to getting all their needs met online from the comfort of their homes: groceries, restaurant deliveries, entertainment, and even gambling and playing the lottery – and this comfort is one that many will continue to seek long-term.
“The future, and what it holds in terms of a second wave and the possibility of renewed lockdowns, remains uncertain. Operators need to use this time to become more prepared and find ways to react to these market changes and player needs with long-term solutions.
“As the world becomes more digitally inclined, with Covid-19 forcing all demographics to become more digitally dependent, a unique opportunity has arisen where traditionally land-based players can easily be converted into digital ones without spending considerable time and resources educating them about the benefits of digital.
“The entire world has been forced into adopting a digital approach, and the lottery sector must therefore embrace technology in order to continue to reach their players and acquire new ones. Going digital would also give retail operators access to a new player base which already entertained themselves in an online gaming space, and who could easily be converted into lottery players.
“In order to succeed long-term, lotteries must strive to provide a seamless, omni-channel player experience that merges digital and retail initiatives. Solutions such as those offered by Spinola Gaming are specialised in helping operators make the move to digital, while still maintaining their traditional retail operations through one seamless interface.”